On positive side the order book stand healthy at Rs 7270 crore as end of Sep 2011.

• Upside in revenue for the quarter largely from Capital Goods segment with its segment revenue grew by 67% to Rs91.49 crore and that of Construction & EPC down by 37% to Rs 679.08 crore. Fall in revenue of construction & EPC for the quarter was largely on account of delay in material inspection and clearance on the client side as well as approval issues in Engineering & Design. This forced majority of the revenue to slip to Q3FY12/H2FY12.
• Better margin is on account of change in revenue/product mix. While the capital goods contribution to topline at 12% for the quarter is higher compared to just 5% in the corresponding previous period. The share of C&EPC was down to 88% from 95% in corresponding previous period. Revenue mix in terms of EPC: BoP for the quarter stood at 55% for EPC and 45% for BoP. Increased contribution from higher margin Capital Goods as well as even with in C&EPC the share of high margin BoP were higher for the quarter compared to corresponding previous period. This has led to sharp rise in OPM. Greater contribution from BoP projects of Chandrapur and Malwa have boosted the margin.
• Segment margin of Capital Goods expanded by 1250 bps to 19.9% and that of C&EPC was up by 140 bps to 13%. Thus gained by both higher sales and expansion in margin the segment profit of Capital goods was up by 349% to Rs 18.23 crore but that of C&EPC was lower by 30% to Rs 87.97 crore largely on account of lower sales.
• Other income was lower by 98% to Rs 0.04 crore. The interest cost was up by 118% to Rs 30.18 crore and depreciation was up by 23% to Rs 4 crore. Thus the PBT was down by 35% to Rs 76.06 crore.
• Eventually the PAT was lower by 34% to Rs 51.35 crore gained by 150 bps fall in tax rate to 32.5% on yoy basis.

Half yearly performance

Sales was down by 26% to Rs 1505.67 crore and the OPM was up by 210 bps to 13.7% thus the fall in operating profit restricted to 13% to Rs 206.28 crore. The PBT was lower by 28% (to Rs 150.40 crore) aggravated further by higher interest cost, but the PAT was eventually lower by 27% to Rs 101.61 crore on the back of lower tax incidence.

The stock hovers around Rs 281.45.